Bitcoin's market recently experienced a turbulent weekend, seeing its price dramatically drop from $84,350 to $75,000. This sharp decline defied the typically quiet price action of previous weekends and has prompted a closer look at underlying market dynamics, particularly the behavior of long-term holders (LTH).
Long-Term Holders Accumulate Amid Short-Term Decline
Despite the recent price volatility, on-chain analysis reveals an interesting trend: Bitcoin's long-term holders are actively accumulating more BTC. According to pseudonymous analyst Darkfrost on CryptoQuant, the LTH supply change indicator points to approximately 186,000 BTC being added to long-term holdings on a monthly average. This accumulation by seasoned investors suggests a growing conviction in Bitcoin's future, as they tend to hold coins unmoved for extended periods (typically around 155 days). Conversely, this implies a steady contraction in the supply held by short-term investors. Historically, such a shift between long-term and short-term investor behavior has been observed during periods of Bitcoin price retracement, as seen in April. While the increased LTH accumulation is generally considered a bullish signal, indicating reduced selling pressure from experienced hands, the immediate market outlook remains cautious. Darkfrost highlights a significant lack of demand that could cushion further price drops. The market appears to be entering a bearish phase, raising concerns about potential capitulation events in the near term. If such events occur, Bitcoin's price could plummet as weaker investors might sell off their holdings or face liquidation. For a sustained bullish recovery, a clear resurgence in demand is crucial, complementing the ongoing accumulation by long-term holders.
Bitcoin Price at a Glance
As of press time, Bitcoin is trading around $78,060, reflecting a 6.9% loss over the past 24 hours.
